Exhibit 99.1
American Retirement Corporation
Completes Letter of Credit Facility
NASHVILLE,
Tenn.--(BUSINESS WIRE)--June 30, 2005--American
Retirement Corporation (NYSE:ACR), a
leading national provider of
senior living housing and care, announced
today that it had set up a
letter of credit facility with Bank of
America.
The facility is for
$10.6 million and is collateralized by two
unencumbered assisted living communities.
The initial use of the
letters of credit was to replace $8.4
million of cash being used to
collateralize reserves required by the
state of Florida for several
entrance-fee communities. The cash that was
released was used to
reduce debt. Additional letter of credit
capacity can be added to the
facility.
"This is a part of our
strategy to use the improved financial
position of the Company to reduce our
restricted cash and, in turn,
reduce debt," said Bill Sheriff, Chairman,
President and CEO of
American Retirement Corporation. "We are
pleased to establish this
facility with Bank of America, an
institution with which we have
enjoyed a long-term relationship."
Company Profile
American Retirement
Corporation is a national senior living and
health care services provider offering a
broad range of care and
services to seniors, including independent
living, assisted living,
skilled nursing and Alzhei
